Business software giant Oracle announced plans Monday to buy struggling tech firm Sun Microsystems for 7.4 billion dollars including debt and cash. The deal comes after Sun reportedly rejected a take-over bid from computer giant IBM. It will boost Oracle, the number two software firm, by giving it the popular Java programming language and Solaris operating software for computer servers.
The cash acquisition amounts to 9.50 dollars per share of Sun, or 5.6 billion dollars. The value rises to 7.4 billion dollars including Sun's debt and cash. "The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems," Oracle's chief executive Larry Ellison said in a statement.
"Oracle will be the only company that can engineer an integrated system - applications to disk - where all the pieces fit and work together so customers do not have to do it themselves," he said. Sun chairman Scott McNealy hailed the merger as "an industry-defining event." Company officials said Sun's board of directors have unanimously approved the deal which is expected to close this year pending approval from the company's stockholders and federal regulators.